Raffles Education: Sold at 27.5c resistance.

On Monday, 3 Jan 2011, I mentioned "Raffles Education is rebounding in earnest. The MACD broke out of its downtrend and is rising while the MFI and RSI show positive momentum. OBV shows accumulation. Immediate resistance at 26c.  This is followed by 26.5 which is where we find the declining 50dMA. The most formidable resistance is probably provided by the 100dMA which is at 27.5c. The last time price tested the 100dMA was on 21 Sep 2010. For anyone looking to reduce exposure, selling at resistance in a downtrend is conventional wisdom."

Today, Raffles Education broke out of its downtrend which coincides with the declining 50dMA at 26.5c. This was on the back of higher volume. Closing at 27.5c is at resistance provided by the declining 100dMA. An intra day high of 28c was achieved, however, and if volume continues to expand with an upward push in price, the next significant resistance level is at 30c, which is where we find the declining 200dMA.

Could I have been too hasty in selling off my money losing position initiated a couple of months ago? I do not know but I recognise that, downtrend notwithstanding, the 100dMA has been the limit of any rebound the counter has staged for the last 12 months. Could it be different this time? Of course, it could be but this being purely a trade, I chose to follow conventional wisdom.

Tea with AK71: Uncles fight on SBS bus.

I thought this only happens in Hong Kong.



I think I have taken the same bus service from Orchard Road to Chinatown before. I remember that the bus was mostly filled with senior citizens. I would never have thought such a scene probable.  Really, I mean these are not teenagers from 369, right? Does SBS have a service number 369?

NOL: Full steam ahead.

NOL tested its high of $2.35 touched in April 2010. The difference is that in April, it was a black candle and in the last session, it was a white candle. I like what I see in the OBV. It has been placid since early November 2010 as price went on to form two dips. No visible distribution. The weaker holders were being shaken out.

Taking the lows of $2.02 and $2.12, using $2.24 as the neckline gives me two targets at $2.36 and $2.46. $2.35 is only 1c shy of $2.36. I expect $2.46 to be attainable if volume continues to expand on upmoves. Having said this, price climbs a wall of worries and the MFI and RSI are bordering on overbought. It would make sense to divest partially and take some profit at resistance. Good luck to all NOL shareholders.

Credit Suisse rates Asia container shipping sector Overweight; Likes NOL
Tuesday, 04 January 2011

© 2011 - The Edge Singapore

CapitaMalls Asia: Eyeing $1.83.

As mentioned in my last post, I am keeping an eye on CapitaMalls Asia. Price formed a wickless black candle today as it closed at $1.87 on higher volume. Support was established at $1.83 and it would be interesting to see if this would be tested in the next couple of sessions. If tested on lower volume, it could possibly signal the formation of a bottom.

Coupled with a lower volume, we want to see the MACD forming a higher low and the MFI keeping above its trendline support. We would then have the ingredients for a possible reversal. As of now, the downtrend is still intact and if downward movement in price continues with higher volume, things could turn ugly.

CapitaMalls may spend $2b  on new projects this year
Tuesday, 04 January 2011

© 2011 - The Edge Singapore